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BTU Stock Analysis - PEABODY ENERGY CORP AI Rating

BTU NYSE Bituminous Coal & Lignite Surface Mining DE CIK: 0001064728
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
82% Confidence

📊 BTU Key Takeaways

Revenue: $3.9B
Net Margin: -1.4%
Free Cash Flow: $-77.7M
Current Ratio: 1.85x
Debt/Equity: 0.09x
EPS: $-0.43
AI Rating: SELL with 82% confidence

Investment Thesis

Peabody Energy is unprofitable with negative operating and net margins despite a substantial revenue increase, indicating poor operational efficiency rather than healthy growth. The company is destroying shareholder value with negative ROE/ROA and free cash flow, while managing acceptable liquidity and leverage ratios that provide limited support. The fundamental profitability crisis and negative interest coverage pose significant risks to long-term viability.

BTU Strengths

  • + Strong liquidity position with current ratio of 1.85x and cash reserves of $575.3M
  • + Conservative leverage with debt-to-equity ratio of 0.09x, providing financial flexibility
  • + Positive operating cash flow of $333.7M demonstrates some cash generation despite net losses

BTU Risks

  • ! Negative net income of -$52.9M with deteriorating net margin of -1.4%, indicating unprofitability
  • ! Negative free cash flow of -$77.7M despite positive operating cash flow, suggesting capital intensity exceeds generation
  • ! Negative interest coverage of -1.8x raises concerns about debt service capability and financial distress risk
  • ! Declining EPS of -$0.43 with 115.9% YoY deterioration signals shareholder value destruction
  • ! Operating margin of -2.1% demonstrates fundamental operational inefficiency despite 8696% revenue growth

Key Metrics to Watch

BTU Financial Metrics

Revenue
$3.9B
Net Income
$-52.9M
EPS (Diluted)
$-0.43
Free Cash Flow
$-77.7M
Total Assets
$5.8B
Cash Position
$575.3M

💡 AI Analyst Insight

PEABODY ENERGY CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

BTU Profitability Ratios

Gross Margin N/A
Operating Margin -2.1%
Net Margin -1.4%
ROE -1.5%
ROA -0.9%
FCF Margin -2.0%

BTU vs Default Sector

How PEABODY ENERGY CORP compares to Default sector averages

Net Margin
BTU -1.4%
vs
Sector Avg 12.0%
BTU Sector
ROE
BTU -1.5%
vs
Sector Avg 15.0%
BTU Sector
Current Ratio
BTU 1.9x
vs
Sector Avg 1.8x
BTU Sector
Debt/Equity
BTU 0.1x
vs
Sector Avg 0.7x
BTU Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BTU Balance Sheet & Liquidity

Current Ratio
1.85x
Quick Ratio
1.40x
Debt/Equity
0.09x
Debt/Assets
38.3%
Interest Coverage
-1.82x
Long-term Debt
$321.2M

BTU 5-Year Financial Trend

BTU 5-year financial data: Year 2021: Revenue $4.6B, Net Income -$185.1M, EPS $-2.04. Year 2022: Revenue $5.0B, Net Income -$1.9B, EPS $-19.14. Year 2023: Revenue $5.0B, Net Income $371.4M, EPS $3.22. Year 2024: Revenue $5.0B, Net Income $1.3B, EPS $8.31. Year 2025: Revenue $4.9B, Net Income $815.6M, EPS $5.00.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: PEABODY ENERGY CORP's revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $5.00 reflects profitable operations.

BTU Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-2.0%
Free cash flow / Revenue

BTU Quarterly Performance

Quarterly financial performance data for PEABODY ENERGY CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.0B -$63.3M $-0.52
Q2 2025 $890.1M $6.8M $0.06
Q1 2025 $937.0M $34.4M $0.27
Q3 2024 $1.1B $101.3M $0.74
Q2 2024 $1.0B $179.2M $1.15
Q1 2024 $983.6M $39.6M $0.29
Q3 2023 $1.1B $119.9M $0.82
Q2 2023 $1.3B $179.2M $1.15

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BTU Capital Allocation

Operating Cash Flow
$333.7M
Cash generated from operations
Capital Expenditures
$411.4M
Investment in assets
Dividends Paid
$36.5M
Returned to shareholders

BTU SEC Filings

Access official SEC EDGAR filings for PEABODY ENERGY CORP (CIK: 0001064728)

📋 Recent SEC Filings

Date Form Document Action
Mar 12, 2026 4 xslF345X05/wk-form4_1773347050.xml View →
Mar 12, 2026 4 xslF345X05/wk-form4_1773346945.xml View →
Mar 12, 2026 4 xslF345X05/wk-form4_1773346828.xml View →
Mar 12, 2026 4 xslF345X05/wk-form4_1773346750.xml View →
Mar 12, 2026 4 xslF345X05/wk-form4_1773346678.xml View →

Frequently Asked Questions about BTU

What is the AI rating for BTU?

PEABODY ENERGY CORP (BTU) has an AI rating of SELL with 82% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BTU's key strengths?

Strong liquidity position with current ratio of 1.85x and cash reserves of $575.3M. Conservative leverage with debt-to-equity ratio of 0.09x, providing financial flexibility.

What are the risks of investing in BTU?

Negative net income of -$52.9M with deteriorating net margin of -1.4%, indicating unprofitability. Negative free cash flow of -$77.7M despite positive operating cash flow, suggesting capital intensity exceeds generation.

What is BTU's revenue and growth?

PEABODY ENERGY CORP reported revenue of $3.9B.

Does BTU pay dividends?

PEABODY ENERGY CORP pays dividends, with $36.5M distributed to shareholders in the trailing twelve months.

Where can I find BTU SEC filings?

Official SEC filings for PEABODY ENERGY CORP (CIK: 0001064728) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BTU's EPS?

PEABODY ENERGY CORP has a diluted EPS of $-0.43.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI